Glacier Bancorp's Q2 2025: Key Contradictions in Margin Projections and Loan Growth

Margin projections and contributors, loan growth and pipeline are the key contradictions discussed in Glacier Bancorp's latest 2025Q2 earnings call.



Net Interest Margin Expansion:
- Glacier Bancorp reported a net interest margin on a tax-adjusted basis of 3.21%, up 17 basis points from the first quarter and 53 basis points year-over-year.
- The expansion was driven by higher average loan balances, improved loan yields, and declining funding costs.

Loan and Deposit Growth:
- The loan portfolio grew by $1.3 billion to $18.5 billion, an 8% increase from the prior quarter, with 6% annualized organic growth.
- Deposits also grew to $21.6 billion, up 5% quarter-over-quarter, with noninterest-bearing deposits increasing by 8%.
- Growth was primarily fueled by commercial real estate and strong new loan production.

Credit Quality and Risk Management:
- Glacier Bancorp maintained a strong credit quality profile, with nonperforming assets at 0.17% of total assets and net charge-offs at $1.6 million.
- The allowance for credit losses remained at 1.22% of loans, reflecting a conservative risk management approach.

Earnings and Expense Management:
- Net income was $52.8 million, a decline of 3% due to acquisition expenses, reflecting an 18% increase year-over-year.
- Noninterest expense was $155 million, up 3% from the prior quarter; however, core noninterest expense was below guide and reflects disciplined spending.